4-Star Stocks Poised to Pop: Deere
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, farm equipment maker Deere (NYS: DE) has earned a respected four-star ranking.
With that in mind, let's take a closer look at Deere's business and see what CAPS investors are saying about the stock right now.
Deere facts
Headquarters (Founded) | Moline, Ill. (1837) |
Market Cap | $27.55 billion |
Industry | Farm and construction machinery |
Trailing-12-Month Revenue | $30.6 billion |
Management | Chairman/CEO Samuel Allen CFO James Field |
Return on Equity (Average, Past 3 Years) | 25% |
Cash/Debt | $3.4 billion / $26.2 billion |
Dividend Yield | 2.5% |
Competitors | Caterpillar (NYS: CAT) Kubota (NYS: KUB) |
Sources: S&P Capital IQ, and Motley Fool CAPS.
On CAPS, 96% of the 2,770 members who have rated Deere believe the stock will outperform the S&P 500 going forward. These bulls include Silvermarmot and All-Star huddaman, who is ranked in the top 15% of our community.
This past summer, Silvermarmot tapped Deere as a clear bargain opportunity:
Value pick; low p/e and pays a dividend. Predict it will do well as long as agriculture prices continue to rise. [M]ajority of revenues still come from North America so there is plenty of room for expanding into new markets.
In fact, Deere currently sports a cheapish P/E of 11. That represents a discount to industry peers like Caterpillar (12.8), Joy Global (NAS: JOYG) (12.6), and Kubota (68.6).
CAPS All-Star huddaman points to Deere's past decade as an indicator of good things to come:
In spite of a lower growth rate in population and disastrous stock market and economy, [Deere] grew its sales from 11 to 26B.
I believe in reversion to the mean. US population growth is not going to slowdown.
There are three main reasons I like it.
a-looks very profitable.
b-good international exposure
c-I am bullish on the US economy over next 10 years in spite of all problems which I believe; will get resolved.
What do you think about Deere, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
Interested in another easy way to trackDeere?Add it to your watchlist.
At the time thisarticle was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Fool owns shares of Joy Global. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.
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